Net national product (NNP) is the total market value of all final goods and services produced by residents in a country or other polity during a given time period (gross national product or GNP) minus depreciation. The net domestic product (NDP) is the equivalent application of NNP within macroeconomics, and NDP is equal to gross domestic product (GDP) minus depreciation: NDP = GDP - depreciation.
Depreciation (also known as consumption of fixed capital) measures the amount of GNP that must be spent on new capital goods to maintain the existing physical capital stock.
NNP is the amount of goods in a given year which can be consumed without reducing future consumption. Setting part of NNP aside for investment permits capital stock growth (see economic growth and capital formation), and greater future consumption.
NNP also equals total compensation of employees + net indirect tax paid on current production + operating surplus.
Famous quotes containing the words net, national and/or product:
“The violent illiteracies of the graffiti, the clenched silence of the adolescent, the nonsense cries from the stage-happening, are resolutely strategic. The insurgent and the freak-out have broken off discourse with a cultural system which they despise as a cruel, antiquated fraud. They will not bandy words with it. Accept, even momentarily, the conventions of literate linguistic exchange, and you are caught in the net of the old values, of the grammars that can condescend or enslave.”
—George Steiner (b. 1929)
“It is accordance with our determination to refrain from aggression and build up a sentiment and practice among nations more favorable to peace ... that we have incurred the consent of fourteen important nations to the negotiation of a treaty condemning recourse to war, renouncing it as an instrument of national policy.”
—Calvin Coolidge (1872–1933)
“The UN is not just a product of do-gooders. It is harshly real. The day will come when men will see the UN and what it means clearly. Everything will be all right—you know when? When people, just people, stop thinking of the United Nations as a weird Picasso abstraction, and see it as a drawing they made themselves.”
—Dag Hammarskjöld (1905–1961)